Are "No-Cost" Mortgages Actually "Cost Free"? What's a "Yield Spread Premium"?

For answers to these questions and a discussion of so-called "no cost mortgages", see these MarketWatch articles:

• Lenders agree more disclosure is needed on 'no cost' mortgages
• Debate between borrowers and lenders rages over 'no-cost' mortgage loans
• No-closing-cost refinancing will cost you one way or the other
• Lenders defend pricing on no-cost mortgages

For a story on the controversial "Yield Spread Premium", thought of by some as a type of hidden charge for a mortgage that may not show up on a closing statement, and by others as a legitimate fee when disclosed and applied properly, see Subprime crisis shines light on mortgage brokers (Class action suit against NovaStar alleges hidden fees; lender to fight back)

For a basic explanation of what the "Yield Spread Premium" is all about, see Mortgage Ails: Too Much Information?

.